LATAM Airlines Valuation
| LTM Stock | USD 30.95 0.66 2.18% |
At this time, the entity appears to be fairly valued. LATAM Airlines Group secures a last-minute Real Value of $29.32 per share. The latest price of the entity is $30.95. Our model forecasts the value of LATAM Airlines Group from inspecting the entity fundamentals such as ebitda of 1.28 B, and Cash And Equivalents of 1.49 B as well as reviewing its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that LATAM Airlines' price fluctuation is very steady at this time. Calculation of the real value of LATAM Airlines Group is based on 3 months time horizon. Increasing LATAM Airlines' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the LATAM stock is determined by what a typical buyer is willing to pay for full or partial control of LATAM Airlines Group. Since LATAM Airlines is currently traded on the exchange, buyers and sellers on that exchange determine the market value of LATAM Stock. However, LATAM Airlines' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 30.95 | Real 29.32 | Hype 30.29 | Naive 31.36 |
The intrinsic value of LATAM Airlines' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence LATAM Airlines' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of LATAM Airlines Group helps investors to forecast how LATAM stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of LATAM Airlines more accurately as focusing exclusively on LATAM Airlines' fundamentals will not take into account other important factors: LATAM Airlines Total Value Analysis
LATAM Airlines Group is now anticipated to have company total value of 0 with market capitalization of 1.83 B, debt of 7.04 B, and cash on hands of 1.49 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the LATAM Airlines fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
0 | 1.83 B | 7.04 B | 1.49 B |
LATAM Airlines Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The recent return on assets of LATAM suggests not a very effective usage of assets in January.LATAM Airlines Profitability Analysis
The company reported the last year's revenue of 11.64 B. Total Income to common stockholders was 581.83 M with profit before taxes, overhead, and interest of 0.About LATAM Airlines Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of LATAM Airlines Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of LATAM Airlines Group based exclusively on its fundamental and basic technical indicators. By analyzing LATAM Airlines's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of LATAM Airlines's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of LATAM Airlines. We calculate exposure to LATAM Airlines's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of LATAM Airlines's related companies.LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, the Asia Pacific, and rest of Latin America. LATAM Airlines Group S.A. was founded in 1929 and is based in Santiago, Chile. LATAM Airlines operates under Airlines classification in USA and is traded on BATS Exchange. It employs 41729 people.
LATAM Airlines Growth Indicators
Investing in growth stocks can be very risky. If the company such as LATAM Airlines does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 604.4 B |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in LATAM Airlines Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Is Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LATAM Airlines. If investors know LATAM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LATAM Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of LATAM Airlines Group is measured differently than its book value, which is the value of LATAM that is recorded on the company's balance sheet. Investors also form their own opinion of LATAM Airlines' value that differs from its market value or its book value, called intrinsic value, which is LATAM Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LATAM Airlines' market value can be influenced by many factors that don't directly affect LATAM Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LATAM Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if LATAM Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LATAM Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.